Layer 2 solutions on Ethereum, such as zkSync Era and Polygon zkEVM, are growing in popularity due to their ability to minimize fees by batching transactions off-chain while maintaining Ethereum's mainnet security. zkSync Era, the first zkEVM to hit the Ethereum mainnet, has gained significant traction and is expected to account for nearly 20% of the fees paid by layer 2s on mainnet Ethereum in April. Meanwhile, Arbitrum, an optimistic roll-up solution, continues to dominate in terms of fees paid to Ethereum.
The median gas price on the Ethereum blockchain reached 72.49 gwei on April 19th, the highest since June 2022. The main cause of the spike in gas prices was the trading of new meme-coins like PEPE, CHAD, and WOJAK. The MEV bot Jared from subway.eth also contributed to the increase in gas prices by engaging in profitable sandwich attacks on traders, spending over $1.1 million on network fees in just 24 hours. As gas prices rise, layer 2 solutions like zkSync Era and Polygon zkEVM will likely increase activity.
DAI's supply experienced a sharp increase in March as users minted the stablecoin during the USDC crisis. However, the spike was short-lived, with DAI's supply dropping back to 4.78 billion after USDC stabilized. Tether minted one billion USDT on Ethereum this week, bringing its supply to 82.5 billion. The minting aims to prepare for future chain swaps and issuance requests. TUSD saw its supply rise 60% at the same time as DAI's spike but has remained relatively steady since then.
In summary, layer 2 solutions on Ethereum, such as zkSync Era and Polygon zkEVM, are gaining traction as they help minimize fees and maintain security. Gas prices on Ethereum have spiked due to memecoin trading and the activities of MEV bots like jaredfromsubway.eth. DAI's supply experienced a temporary surge during the USDC crisis but has since dropped, while Tether and TUSD supplies have seen increases. As gas prices continue to rise, layer 2 solutions are likely to see increased activity and adoption.
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